Frequently Asked Questions

What is a 401(a) defined contribution plan?

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A type of retirement plan under which an employer typically contributes a percentage of salary or a flat dollar amount per year. The benefit available from the plan at retirement will be based on the total contributions and earnings on such contributions over the time the money is invested.

This Defined Contribution Plan is a mandatory plan and is established under Internal Revenue Code (IRC) Section 401(a). Under the Plan, you postpone receiving (defer) a portion of your salary. The assets accumulated under the Plan are distributed at retirement or due to another qualifying event such as disability, death, or separation from service.

It works like this for employees with pay grade 19 and above:

You are required to make a contribution each pay period equal to 6% of your compensation.

The City makes a matching contribution each pay period equal to 6% of your compensation.

For employees with pay grade 18 and below, sworn police and fire personnel hired after September 1, 2011, or switched over to Hybrid Plan:

You are required to make a contribution each pay period equal to 3.75% of your compensation.

The City makes a matching contribution each pay period equal to 3.75% of your compensation.

You also can contribute an optional amount up to 4.25% of your compensation to 457 plan and the City will match that amount as well.

Contributions are invested in the investment options you have selected.

The contributions and any earnings that accumulate are not taxed until they are distributed. This is usually at retirement when you may be in a lower tax bracket.

Amounts are held for the exclusive benefit of Plan participants and beneficiaries.

This website is intended to be a summary of the Plan provisions. In the event that a conflict exists between the information contained within this website and the plan document, the plan document provisions prevail. For more information, please contact your local representatives.

What is the maximum amount that can be contributed to the 401(a) Plan?

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The annual limit of compensation that may be taken into account for contribution purposes in accordance with IRC Section 401(a)(17) (governmental plan sponsors) for 2015 is $395,000.

When am I vested in the 401(a) Plan?

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All Participants shall at all times be fully invested in their Mandatory Employee Contributions.

All Participant Employer Contributions shall vest in accordance with the following vesting schedule:

Years of Service Completed by Participant

Vested Percentage

Less than 1

0%

1 Year, but less than 2

20%

2 Years, but less than 3

40%

3 Years, but less than 4

60%

4 Years, but less than 5

80%

5 Years or more

100%

Can I roll over into the 401(a) Plan?

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Yes. Your distribution can be rolled over into a 401(a), 401(k), 403(b), another government 457 plan, or a traditional IRA. All distributions are eligible for rollover except for IRS required minimum distributions payable on or after you attain age 70½.

Please note: Amounts rolled into a governmental 457 plan from another plan type would be subject to the 10% premature penalty tax if distributed prior to age 59½, unless an IRS exception applies.

Voya does not offer tax or legal advice. You should consult with a tax advisor and /or tax attorney concerning your personal situation before making a financial / investment decision.

When can I receive a distribution of my benefits under the Plan?

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Distributions are allowed only upon your separation from employment, death, or the occurrence of an unforeseeable emergency, which are considered to be triggering events.

After you have separated from employment and would like to select a benefit payment option, please call our Retirement Readiness Service Center (call center) at (800) 584-6001 to request a distribution and for the Termination/Distribution Request Authorization form that you will need to complete.

Is Disability Insurance available?

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Insurance products, annuities and retirement plan funding issued by (third party administrative services may also be provided by) Voya Retirement Insurance and Annuity Company, One Orange Way, Windsor, CT 06095-4774. Securities are distributed by Voya Financial Partners, LLC (member SIPC). All companies are members of the Voya® family of companies. Securities may also be distributed through other broker-dealers with which Voya has selling agreements. Insurance obligations are the responsibility of each individual company. Product and services may not be available in all states.